Essar Steel lenders have finally decided to take things into their own hands and have approached Tata Group and JSW Group to buy out Essar's debt-ridden steel arm.
However, both the steel giants see a lot of problems.
Tata Steel says the bankers don't have enough control over Essar Steel for it to go ahead with the deal, said CNBC-TV18's Latha Venkatesh, quoting sources.
For JSW Steel, buying the Essar arm is tricky as it would involve other multi-corporate deals. The Essar arm has linkages with Essar Ports through which its products are transported. Its slurry pipeline and oxygen plants have been sold and leased back. In addition, it has a power purchase agreement with Essar Power.
However, a deal looks imminent.
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